The Superior times. [volume] (Superior, Wis.) 1870-1912, 1887-12-17
REDUCING THE SURPLUS.
Secretary Fairchild Unfolds His
Plan to Congress.
TREASURY DEPARTMENT REPORT.
Condition of the National Finances Need
of Taxation Reform-Three WAYS
to Accomplish the End De-
sired-Agreeing With
Cleveland.


to Accomplish the End De-
sired-Agreeing With
Cleveland.
WASHINGTON, ID. c., Dec THE sec
retary Of the treasury in his annual re-
port submitted to Congress to. day saws
that the total ordinary receipts of the
government during the year ending
June 30, 1887, were 1871 ,403, ,277, and that
the total ordinary expenditures were
$50 $50 ,42S, leaving a surplus of S55,-
o5I ,o49, which with an amount
drawn from the cash balance
in the treasury of $24, ,455,-
72G, makes total surplus Of $50, 023. 90,
which Was offered to the redemption OF
bonds. The receipts for the year show
an increase of S34, 963, $50 over the year
before and the expenditures show an
increase of S25, ,04l. For the present
year the revenues are estimated at $685.
G0O,0 ,0O0 and the expenditures $3I6,S17,- :
rs, leaving an estimated surplus Of $685.
1872, PA June 80, 1883. The secretary es-
timates the surplus for the year 1889 at
$50, 1863, ,206.
IN REG ARD TO THE SURPLUS
revenue the secretary SAYS: Taxation
and currency reform were the questions
which my distinguished predecessor
deemed to be OF most pressing impor-
-tlnce and to them tie devoted large
part Of the two annual reports which he
made to the Congress-. In those reports
be stated his honest convictions with a
vigor and boldness which, together with
the ability and fairness that ne showed
IN the general management of
this department have given him
"A high place among statesmen
and fnanciers. | find the
same subject to be still the most i'm
pOrtant of all those to which it is nv
duty TO call your attention and it Is not
necessary to do otherwise than follow
the general lines laid down by him in
treating them. Circumstances have
heightened the immediate urgency of
taxation reform as affecting the surplus
revenues OF the government. The
URGENCY Is so GREAT
that the question of surplus revenues
demands the earnest attention of both
the Legislative and executive branches
of the government" The secretary
then gives the following ways in which
the receipts and expenditures Of the
government may be made about equal
''tirst-Ihe purchase of the interest
bearing debt OF the government.
'Second-Larger expenditures by
government for other purposes than the
purchase of bonds, so that they shall
each year equal the taxation of that
year.
Third Reduction af the revenue
from taxation 10 the mount actually re-
quired to meet necessary expenses.
thaEn
common the one merit OF preventing the
arrangement 10 business which must
follow boarding or locking up in The
treasury the circulating media of the
people" In regard to the first plan the
secretary agrees with what the Presi-
dent in his message said on the same
subject. He then says: Il cannot be-
ieve that it will adopt the second ex-
pedient, viz, the enlargement of
government expenses simply to expend
money raised by taxation when the pub
lie veal does not otherwise call Tor the
expenditure.
Reduction of the revenue from tax
alton Is the only fit remedy for the evils
which threaten the country. This may
be accomplished in various WAYS. One
is to reduce or abolish internal revenue
taxation. In favor OF this is the fact
states the internal tax on liquors and to-
bacco is thought to be oppressive and is
odious to the people of those regions;
and the further fact that by its reduction
the expenses of its collection might be
somewhat reduced. The chief cause for
the
PREJUDICE AGAINST THIS TAX
seems to be that as there was no such
tax before the war Tor the Union, it is
looked upon as remainder of the
measures adopted to raise money to
carry on the war, and which ought not
to be continued in time of peace, and
as interfering in some way with
the natural rights of mankind to
grow grain and tobacco and manufacture
theretorm spirits, cigars, snuff and the
various forms of merchantable tobacco.
OI course taXauUn OF whisky and tObac-
co trespasses no more upon the natural
rights of man than does the taxation of
his clothing, of his bedding, of every i'm
plement which he uses in the cultiva-
ton OF his grain and tobacco and in the
dIsullatlon or manufacture of the same.
The burden of the one tax is direct,
known, fixed; the whole OF it goes into the
governments treasury; the burden of
the other is indirect ana unknown,
and only portion of it comes
into the treasury. 1t reaches the farm
er or dlstlller increased by the profit
upon ITSELF when every merchant must
take as the clothing or tools pass through
his hands on their journey to them from
the foreign or domestic manufacturer.
Taxation there must be. The choice
is between kinds of taxation; each man
can decide for himself, if he will exam
inc the subject free from prejudice,
which is the least burdensome for him,
ior his family, and for his neighbors,
and which is in the end better for his
whole country. That Internal
TAXATION OF SPIRITS AND TOBACCO
began during the war is not a reason
why it should be done away with now,
il it be in itself wise. So the fact that
the rates OF customs taxation were
raised during the same war far
history and have been continued until-I
the manner of their treatment; this
should rather depend upon what is just
and expedient at the present time
Neither passion, prejudice nor senti-
should have place IN the con-
sIderation OF questions of taxation.
"As to the expense of collecting the
revenue | suggest that an ANAL
gamatIon Of the customs and internal
revenue systems is entirely feasible, and
thit thereby large number
Of offices might be abolished,
aud that the expense of the whole sys-
tenn might be made not to exceed that
OF an efficient enforcement of the Gus
toms laws. | earnestly commend this
to the careful consideration
OF the congress.
''To do away with the whole revenue
from internal taxes at present would so
diminish the revenues that it would be
either to lay duties on articles
of Importation now free, such as tea and
coffee, or to suspend the sinking fund
requirement and also materially
diminish other expenses of government.
The tax on whisky and beer IS the least
the least unjust of all the
laws which the government LAYS or can
lay upon the people; it should not
he abolished, nor should it be
a